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TITLE OF BILL: An act to amend the tax law, in relation to increasing the authorized resident taxpayer contribution to family tuition accounts to $10,000 per taxable year for each beneficiary thereof

PURPOSE: Increases to $10,000 the contribution that a resident taxpayer may make to family tuition accounts for each child during a taxable year.

SUMMARY OF PROVISIONS: Contributions made by an account owner under the New York State college choice tuition savings program should not be deductible for federal income tax purposes. However, individual or the head of household shall not exceed twenty thousand dollars for the account(s) of each beneficiary.

JUSTIFICATION: This legislation encourages parents to save tax-free tuition money for each child planning to attend college. Affording children the opportunity to attend college without incurring debt upon graduation.

LEGISLATIVE HISTORY: 2011-12: S.602 2010: S.7306 2007-08: A.10222

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law.

Text

STATE OF NEW YORK
________________________________________________________________________
60
2013-2014 Regular Sessions
IN SENATE
(PREFILED)
January 9, 2013
___________

Introduced by Sen. PERALTA -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to increasing the authorized
resident taxpayer contribution to family tuition accounts to $10,000
per taxable year for each beneficiary thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 32 of subsection (c) of section 612 of the tax
law, as amended by chapter 81 of the laws of 2008, is amended to read as
follows:
(32) Contributions made during the taxable year by an account owner to
one or more family tuition accounts established under the New York state
college choice tuition savings program provided for under article four-
teen-A of the education law, to the extent not deductible or eligible
for credit for federal income tax purposes, provided, however, the
exclusion provided for in this paragraph; FOR AN INDIVIDUAL OR HEAD OF
HOUSEHOLD, shall not exceed [five] TEN thousand dollars [for an individ-
ual or head of household] FOR THE ACCOUNT OR ACCOUNTS OF EACH DESIGNATED
BENEFICIARY, AS DEFINED IN SECTION SIX HUNDRED NINETY-FIVE-B OF THE
EDUCATION LAW, and for married couples who file joint tax returns, shall
not exceed [ten] TWENTY thousand dollars FOR THE ACCOUNT OR ACCOUNTS OF
EACH DESIGNATED BENEFICIARY, AS DEFINED IN SECTION SIX HUNDRED
NINETY-FIVE-B OF THE EDUCATION LAW; provided, further, that such exclu-
sion shall be available only to the account owner and not to any other
person.
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01095-01-3

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